/ 30 June 2008

Minister holds off on fuel levy increase

Motorists will no longer have to cough up an additional 5,4 cents per litre for petrol, Minerals and Energy Minister Buyelwa Sonjica said on Monday.

”We will not be effecting the proposed 5,4 cents wholesale margin this month,” she told reporters at a briefing in Pretoria.

The 5,4 cents increase was due to hit consumers on Wednesday when the petrol price rises again.

Referring to what the hike would mean for investments, the minister said that she was ”mindful” of high crude oil prices and that the country could not act as if ”everything was normal”.

”We will be consulting with industry. If we have to delay investment, we will do so … in offering relief to customers.”

She said there was ”secrecy” on the part of who decided on increases, adding that there was a lack of transparency in the matter.

This was after she attended last week’s Jeddah summit that focused on the global oil price situation.

”As consumer countries we don’t really know what’s going on,” she said

”The main thing that came through [during the summit] is that demand is surpassing supply,” said Sonjica. — Sapa